The reverse. Okay.
Evidence of meeting #25 for Finance in the 40th Parliament, 2nd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was question.
A recording is available from Parliament.
Evidence of meeting #25 for Finance in the 40th Parliament, 2nd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was question.
A recording is available from Parliament.
10:45 a.m.
Director, Federal - Provincial Relations and Social Policy Branch, Department of Finance
If nothing had happened, we would have been at $16 billion. Because of the measures put in place in the budget implementation bill, we are at just over $14 billion for 2009-10. That amount will grow in line with the three-year average of nominal GDP.
10:45 a.m.
Liberal
John McKay Liberal Scarborough—Guildwood, ON
I have just a quick question, then. On the relationship between the incentives for the provinces to eliminate capital taxes, good idea, and with the payment to the Ontario budget of $123 million to $150 million, is there a relationship between those two lines?
May 5th, 2009 / 10:45 a.m.
Assistant Deputy Minister, Economic and Fiscal Policy Branch, Department of Finance
What relationship are you referring to?
10:45 a.m.
Liberal
John McKay Liberal Scarborough—Guildwood, ON
I'm looking at the payment to Ontario of $150 million. Was that simply a one-off in 2008-09?
10:45 a.m.
Assistant Deputy Minister, Economic and Fiscal Policy Branch, Department of Finance
I'll let Brian Ernewein, who's the general director of tax policy, answer that.
10:45 a.m.
General Director, Tax Policy Branch, Department of Finance
The $150 million is part of the transitional payment for participation by Ontario in the corporate tax collection agreement; it's for Ontario to join in the federal administration of the provincial Ontario corporate income tax. It's not related to the capital tax.
10:45 a.m.
Liberal
John McKay Liberal Scarborough—Guildwood, ON
There won't be another round, we know that, and I just wanted to see whether there was a connection between the two of them.
10:45 a.m.
A voice
No. Well--
10:45 a.m.
Liberal
10:45 a.m.
Conservative
10:45 a.m.
Voices
Oh, oh!
10:45 a.m.
Conservative
Mike Wallace Conservative Burlington, ON
Thank you, Chair.
I'm going to finish up a little in this area with one question for the finance department. The reason I come back to it is that on the numbers in what's happening with the private sector comparison and the numbers that are in here, I expected to see the numbers go up at least a little in terms of employees, and that's not here. It's not reflected here.
That program was announced last year and we're just getting around to it now, so it should have been reflected in the estimates, as far as I'm concerned. I thought it was interesting that the numbers went down in terms of employees, but there's a new program that you're assuming may have caused some changes. For us to have the proper information to be making decent decisions, it's great to have that information.
My question is a quick one. There has been a lot of discussion in the House about the HST in a number of provinces, including Quebec. Do we pay Quebec to collect our GST? What would that amount be every year?
10:45 a.m.
Commissioner and Chief Executive Officer, Canada Revenue Agency
Yes, we've had an arrangement with Quebec from the outset for the administration of the tax. This year, the payment is roughly $135 million.
10:45 a.m.
Conservative
10:45 a.m.
Commissioner and Chief Executive Officer, Canada Revenue Agency
Virtually from the beginning. It goes back to shortly after the launch of the GST in the early 1990s.
10:45 a.m.
Conservative
Mike Wallace Conservative Burlington, ON
Around 20 years, whatever it has been. About 15 years then, I guess.
We've been paying that amount to them, but the two taxes are completely separate. There's a GST and a QST, is that not correct? There's not a HST in Quebec.
10:45 a.m.
Commissioner and Chief Executive Officer, Canada Revenue Agency
It's a single administration, but it collects two taxes.
10:45 a.m.
Conservative
Mike Wallace Conservative Burlington, ON
And we pay them for that collection. I see. Thank you for that clarification. I only wanted to be sure of that.
I have one little question for my information. I noticed a change in the reporting, and I'll pick on FINTRAC because there has been no change to the actual amounts, except for its split-up. I think we now call it internal services. I couldn't find internal services prior, even though the number adds to be same.
What caused that change, and what does that mean, internal services?
10:45 a.m.
Executive Director, Corporate Services Branch, Department of Finance
In prior years, the Treasury Board Secretariat had asked all departments to reflect internal corporate services. These are things like financial, communication, legal, HR support, as part of and incorporated in each program activity. Starting with these main estimates, they have asked departments to reflect those costs as a separate and intact program activity, so it's a change in reporting structure from prior fiscal years.
10:50 a.m.
Conservative
Mike Wallace Conservative Burlington, ON
The reason for that was to expose more what those costs are, or do you have any sense of why they asked you to do that?
